Daimler is finalising plan to make all-electric, 5G-enabled Smart micro cars in China for export with largest shareholder Geely
- Plans for the 50:50 venture will be finalised by the end of this year, with the aim of putting the first vehicles on the road by 2022
- The all-electric, 5G-enabled micro cars will be made at a new factory in China for exports, while Daimler continues making its current range in Europe
Daimler, the maker of the Mercedes-Benz luxury cars, said it is finalising a plan with its biggest shareholder Zhejiang Geely Holding Group to assemble Smart micro-cars in China for export.
“As equal partners, we are dedicated to promoting the smart brand globally,” said Geely’s founder Li Shufu, who is a board member of the new venture. Li owns 9.7 per cent of Daimler, as the largest single shareholder of the German carmaker.
Infographic: Global vehicle assemblers and their venture partners in China
Over two decades, the brand has produced the ForTwo and ForFour models that ran on petrol, a hybrid petrol-electric model and an all-electric variant starting in 2009. The division had never been profitable, incurring €700 million (US$786 million) in annual losses for Daimler, according to Motley Fool’s report. Still, the development of the series helped to improve the fuel efficiency average of Daimler’s vehicles.
The new venture will involve equal number of board representation by Geely and Daimler, according to the statement.